Caterpillar Earnings, Revenues Soar

Caterpillar Inc. (NYSE: CAT) this morning reported second-quarter earnings per share (EPS) of $2.54 and $17.37 billion in revenue. EPS rose from $1.57 in the same period a year ago, while revenue was up from $14.23 billion. The results compare to the Thomson Reuters consensus estimates for EPS of $2.28 and $17.11 billion in revenue. Both the quarterly EPS and revenue were all-time records for the company.

The heavy machinery maker narrowed its full year forecast for revenue and raised its earnings forecast. The revenue forecast was adjusted from $68 billion to $72 billion to a range of $68 billion to $70 billion. EPS guidance was raised from $9.50 to “about $9.60.” The consensus estimate for yearly revenue was $69.52 billion and the EPS estimate was $9.54.

The company’s CEO noted:

Whether you look at cost control, delivery performance, safety, quality, new product introductions or margin rates, Caterpillar’s operational performance in the quarter was excellent. It’s what drove second-quarter profit and is providing a solid foundation as we balance our positive long-term view of the world economy with the high level of uncertainty we’re all seeing today.

Caterpillar attributed the adjustment of its revenue forecast to the impact of about $1 billion in negative currency impacts for the year. But currency translations had “little impact” on the EPS forecast. The company’s forecast, if it materializes, would be Caterpillar’s best ever.

Caterpillar’s shares are trading up more than 4% in the premarket this morning, at $84.95 in a 52-week range of $67.54 to $116.95. Thomson Reuters had a consensus analyst price target of $116.50 before today’s results were announced.

Paul Ausick